Ground Floor Opportunity To Discover Why Gold Prices Will Hit $5,000 And Even Higher Shortly!

March 16, 2011 - PRLog -- Gold prices and silver prices ought to benefit significantly from the news of the dubious values of US dollars. Look for large increases within the costs for silver and gold coming soon. This makes silver dollar values look like an excellent investment now. Buy silver now! Purchase Gold today!

You by now know about the fundamental reasons for owning gold and silver for currency protection, inflation hedge, store of value, calamity insurance, many of which in turn are becoming common knowledge even in mainstream articles. Throw in the supply and demand imbalance, and you've got the basic arguments for why one ought to keep gold for the foreseen future. Visit http://silver-dollar-values.com for more silver and gold tips.

All of these factors remain very bullish, in spite of gold’s 450% rise over the past decade. No, it is not too late to buy, particularly in the event you do not own a meaningful quantity; and yes, I am convinced the price is headed a lot higher, regardless of the corrections we will inevitably see. Each of the previously mentioned catalysts will force gold’s price higher and higher within the years ahead, especially the currency problems. Visit http://silver-dollar-values.net for more silver and gold tips.

But there is an additional driver of the price that escapes numerous gold watchers and definitely the mainstream media. And I'm convinced that once this sleeping giant awakens, it could fire up the gold marketplace like absolutely nothing we have ever seen.

The fund management business handles the majority of the world’s riches. These institutions consist of insurance businesses, hedge funds, mutual funds, sovereign wealth funds, etc. But the elephant in the place is pension funds. These are institutions that offer retirement income for both public and private plans.

Global pension assets are estimated to be $31.1 trillion. No, that is not a misprint. It is more than twice the dimension of last year’s GDP in the U.S. of $14.7 trillion. Visit http://silverdollar.cc for more silver bullion and gold tips.

Now here is the fun part. Let’s point out fund managers as a group realize that bonds, equities, and real estate have turned out to be poor or risky investments and so determine to increase their allocation to the gold market. If they doubled their exposure to gold and gold stocks - which might still represent only 0.6% of their overall assets - it would amount to $93.3 billion in new purchases.

Just how much is that? The investments of GLD total $55.2 billion, so this quantity of money is 1.7 times bigger than the largest gold ETF. SLV, the largest silver ETF, has net property of $9.3 billion, a mere one-tenth of that additional allocation.

The market cap of the entire sector of gold shares (producers only) is about $234 billion. The gold industry might see a 40% increase in new cash to the sector. Its market cap would increase two times if pension organizations allocated just 1.2% of their resources to it.

But what if currency issues spiral spinning out of control? Let's say bonds wither and die? Imagine if real estate takes ten years to recover? What if inflation becomes a barking dog like it has every other time in history whenever governments have diluted their currency to this level? If these funds allocate just 5% of their assets to gold - which would amount to $1.5 trillion - it would certainly overwhelm the system and rocket prices skyward.

And let’s not forget about that this is only one class of institution. Insurance businesses have about $18.7 trillion in assets. Hedge funds manage approximately $1.7 trillion. Sovereign wealth funds control $3.8 trillion. Then you will find mutual funds, ETFs, private equity funds, as well as private wealth funds. Toss in millions of retail investors worldwide like you and me and we are looking at $100 trillion of feasible new invested funds.

Sovereign debt dangers are far from over, the U.S. dollar along with other currencies will lose considerably much more value against gold, interest rates will most definitely rise within the years ahead, and inflation is just becoming started. These forces are in place and building, and if there’s a thinking shift in how these managers view gold, look out!

Because as soon as fund managers enter the gold marketplace in mass, this tiny sector will catch on fire with blazing speed.

My advice is to not just hope you can jump in once these players enter the precious metals marketplaces, but to lay claim to your seat during the relative calm of this month's level prices. Maybe now is the time for you also to think about your investment portfolio and purchase gold and purchase silver as a safe haven in these periods of uncertainty in the political and financial areas. Silver dollar coins make an excellent investment that you are able to personally hold and maintain safe.

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